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Price discrimination: BT broadband offers low price deal for families on Universal Credit

6th May 2021

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Low-income customers in receipt of Universal Credit are set to receive a 50% discount on fibre broadband packages.

This is a good applied example of price discrimination with a supplier charging a lower price to those with a reduced ability to pay for what is essentially the same service. However, it will be interesting to see if this is enough to encourage its uptake - much depends as we know on the coefficient of price elasticity of demand! Will loyal customers get good deals too?

Millions offered half price broadband from BT https://t.co/QVJ8kGDTgE
— BBC News (UK) (@BBCNews) May 3, 2021

Advantages and Disadvantages of Price Discrimination I A Level and IB Economics

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Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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Price discrimination: BT broadband offers low price deal for families on Universal Credit

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Price discrimination: BT broadband offers low price deal for families on Universal Credit

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